New York, New York – GMAC Financial Services has been approved to become a bank holding company, which will provide it with expanded opportunities for funding and access to capital. The company said that this will provide increased flexibility and stability.

GMAC’s application to become a bank holding comany was approved by the Board of Governors of the Federal Reserve System.

“Today’s announcement marks a key turning point in GMAC’s history,” said CEO Alvaro G. de Molina. “As a bank holding company, GMAC will be competitively positioned for the long term to provide financing to auto and mortgage consumers, and businesses such as automotive dealers. GMAC has been a leader in these sectors, and it is critically important to our company and the broader economy to resume responsible lending to consumers and businesses.”